[Asia Economy Reporter Kangwook Cho] KB Kookmin Bank announced on the 29th that it has issued 450 billion KRW worth of Korean won amortizing contingent capital securities (subordinated bonds).
The bonds issued this time are the first subordinated bonds issued by banks since the outbreak of the novel coronavirus disease (COVID-19).
KB Kookmin Bank explained that during the demand forecast conducted on the 19th amid high market interest, it received bids totaling 490 billion KRW based on excellent external creditworthiness and financial stability, successfully oversubscribing, and decided to increase the issuance to 450 billion KRW, up 100 billion KRW from the original plan.
The bonds have a maturity of 10 years, and the issuance interest rate was set at an annual 2.13%, which is the 10-year government bond yield plus 80 basis points.
A KB Kookmin Bank official said, "We issued sustainable subordinated bonds as part of enhancing the BIS ratio and ESG management policies," adding, "The funds raised this time will be used in ESG areas such as supporting small and medium-sized enterprises that have recently been struggling due to COVID-19."
Meanwhile, KB Kookmin Bank recently raised 400 billion KRW (social bonds) and 500 million USD (sustainable bonds) in two separate rounds to support social efforts related to COVID-19.
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